General Motors stock (US37045V1008): IT layoffs signal AI pivot amid EV challenges

General Motors laid off approximately 500-600 salaried IT employees globally in early May 2026, representing over 10% of its IT workforce. The move aims to cut costs and redirect resources toward AI, software, and autonomous driving amid softening electric vehicle demand and elevated operating expenses, Simply Wall St as of May 2026.

The stock traded at $51.82 USD on Jul 7, 2025 on NYSE, down 2.02% that day with after-market at $51.77, Zacks as of Jul 7, 2025. GM projects $185.3 billion revenue and $8.0 billion earnings by 2028, implying a slight annual revenue decline.

As of: 14.05.2026

By the editorial team – specialized in equity coverage.

General Motors: core business model

General Motors designs, manufactures, and sells vehicles including cars, trucks, and SUVs through brands like Chevrolet, GMC, Cadillac, and Buick. The company operates in North America, Europe, China, and other regions, with a growing focus on electric vehicles and autonomous technology. In Q3 2024 ending September, GM reported EPS of $2.96, Zacks as of Jul 7, 2025.

Revenue stems primarily from automotive sales, financing through GM Financial, and after-sales services. The firm invests heavily in EVs via platforms like Ultium and software-defined vehicles to compete in a shifting industry.

Main revenue and product drivers for General Motors

Key drivers include pickup trucks like Chevrolet Silverado and GMC Sierra, which dominate US sales, alongside SUVs and crossovers. EV models such as Chevrolet Equinox EV and Cadillac Lyriq contribute to growth targets. Full-year 2025 EPS was $2.32 versus $6.45 in FY 2024, per Simply Wall St publication.

GM Financial provides loans and leases, boosting profitability. Recent IT restructuring supports AI investments for features like Super Cruise hands-free driving, vital for US market competitiveness.

Industry trends and competitive position

The US auto sector faces EV adoption slowdowns, with GM adjusting production amid high costs. Competitors like Ford and Tesla vie for market share, while GM holds strong in trucks. The May 2026 layoffs underscore a pivot to AI, potentially enhancing software edges for US consumers.

Why General Motors matters for US investors

Listed on NYSE, GM exposes investors to the world's largest auto market. Its truck dominance and EV push align with US economic cycles, tariffs, and green incentives, making it a bellwether for manufacturing health.

Conclusion

General Motors' recent IT layoffs highlight strategic shifts toward AI amid EV headwinds, with long-term projections signaling modest growth. The NYSE-listed stock remains tied to US auto dynamics. Investors track execution on tech investments and market recovery.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.